Correlation Between Grupo Televisa and Vodafone Group

Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Vodafone Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Televisa and Vodafone Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grupo Televisa SAB and Vodafone Group PLC, you can compare the effects of market volatilities on Grupo Televisa and Vodafone Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grupo Televisa with a short position of Vodafone Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Vodafone Group.

Diversification Opportunities for Grupo Televisa and Vodafone Group

-0.21

Correlation Coefficient

Grupo Televisa  Vodafone Group

Very good diversification

The 3 months correlation between Grupo and Vodafone is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Vodafone Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodafone Group PLC and Grupo Televisa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grupo Televisa SAB are associated (or correlated) with Vodafone Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodafone Group PLC has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Vodafone Group go up and down completely randomly.

Pair Corralation between Grupo Televisa and Vodafone Group

Allowing for the 90-day total investment horizon Grupo Televisa is expected to generate 1.2 times less return on investment than Vodafone Group. In addition to that, Grupo Televisa is 1.86 times more volatile than Vodafone Group PLC. It trades about 0.05 of its total potential returns per unit of risk. Vodafone Group PLC is currently generating about 0.12 per unit of volatility. If you would invest  842.00  in Vodafone Group PLC on December 28, 2024 and sell it today you would earn a total of  94.00  from holding Vodafone Group PLC or generate 11.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Grupo Televisa SAB  vs.  Vodafone Group PLC

Grupo Televisa SAB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Grupo Televisa may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Vodafone Group PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vodafone Group PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Vodafone Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Grupo Televisa and Vodafone Group

The main advantage of trading using opposite Grupo Televisa and Vodafone Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Vodafone Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vodafone Group will offset losses from the drop in Vodafone Group's long position.

The idea behind Grupo Televisa SAB and Vodafone Group PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.